The Rise of Luxury Groceries: What's Behind Gen Z's Fascination?

Written by Cove Johnson Rabidoux

When we think of luxury items, we don't normally think of groceries; however, Gen Z is redefining that narrative. Recently, Bank of America has shown that members of Gen Z (those born between 1997 and 2010) spend more on luxury grocery stores than all other demographics. These statistics don't just represent how Gen Z's spending habits vary from other groups, but also how the idea of luxury food is changing.

In September of 2024, a Whole Foods survey hosted by YouGov found that 70% of Gen Z members are willing to spend more on high-quality food. But what constitutes high-quality food, and what brands and foods do Gen Z recognize as luxurious?

Well, for many in this generation, luxurious food is more than just price tags. Rather, it's the emphasis on sustainability, ethical sourcing, and healthier, more transparent options. Data has found that Gen Z, more than any other generation, values the story behind their food. They want to know where their food comes from, how it’s made, and its environmental impact. As a result, organic produce, plant-based alternatives, and artisanal goods are some of the hallmarks of luxury food for Gen Z.

But it's not just plant-based and sustainable foods at the heart of this phenomenon; rather, certain brands and shops have become their status symbols. Perhaps the biggest symbol is the uber-popular grocery store on social media: Erewhon. An expensive and upscale grocery store with 10 locations—all in L.A., Erewhon has become extremely popular on social media. If you ever browse online, you are likely to come across Gen Z health and wellness influencers flaunting their Erewhon grocery hauls. In this haul, it's common to see influencers posing with their fresh, organic smoothies or decadent superfoods. At the heart of Erewhon's popularity are their smoothies. Typically selling for around $20, Erewhon smoothies are packed with protein and superfoods, like sea moss and kale. Celebrities, such as Hailey Bieber, Bella Hadid, and Sabrina Carpenter, have all been photographed enjoying these smoothies.

And that's part of the appeal! To most Gen Z members, a significant reason they are willing to spend on luxury food is social media. Upscale ingredients and grocery stores offer a certain level of sophistication and trendiness that doesn't just look good on social media but presents a polished, healthy aesthetic. (And we all know how important aesthetics are to Gen Z!)

We also see this rise in "luxurious" food in high school-age Gen Z members. While they may not be enjoying Erewhon smoothies and $20 salads daily, more and more high schoolers are turning to foods advertised as healthy alternatives. Among these foods are smoothie bowls and Poppis. Poppi, a brand of health-focused sodas made with apple cider vinegar, has gained a ton of popularity among high schoolers. Many view it as a "cool" and "luxurious" drink, and with its sleek packaging and claims of gut health benefits, it's a must-have for many Gen Z members.

But is this shift to luxurious foods simply a trend or something bigger? Seeds of Transformation, a Substack focused on agriculture and food trends, estimates that there is an 82% probability that Gen Z’s enthusiasm for premium groceries will continue in the future. As a result, Gen Z is redefining what it means to present as luxurious, with food now being a particular status symbol. Food, at least to Gen Z, is no longer just about sustenance; it’s about curating an image and expressing your values through your culinary choices.

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